2019-07-07 18:36:00 Sun ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial foreign reserves in U.S. government bonds, traders may still speculate whether the People Bank of China (PBOC) can fix the Dollar-Renminbi exchange rate below 7.0x. This current exchange rate has substantially declined about 9.3% since April 2018 and now hovers in the stable range of 6.89x-6.92x. PBOC Governor Yi Gang indicates that there is no asymmetric red line for the Sino-American exchange rate. However, Chinese economic policymakers may be hesitant to let their currency depreciate past RMB$7-to-USD$1.
Any expectations of short-term currency misalignment can spur capital flight out of the Chinese economy. Chinese public corporations that list abroad have to make cash dividend payments in June each year; so foreign exchange order flows reveal substantive short-term pressure for these Chinese public firms to sell the offshore Renminbi. As China achieves a near-zero current account surplus in mid-2019, the Renminbi faces downward pressure. Renminbi depreciation has long been a major source of tremendous competitive advantage for China. It is important for the Sino-U.S. trade negotiations to level the playing field with respect to potential Renminbi currency misalignment.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-05-10 07:37:00 Thursday ET

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions in their recent corporate disclosures as of mid-2018. Georg
2019-09-05 09:26:00 Thursday ET

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America. Firs
2019-08-16 17:37:00 Friday ET

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par
2023-04-21 12:39:00 Friday ET

Angus Deaton analyzes the correlation between health and wealth in light of the economic origins of inequality worldwide. Angus Deaton (2015)
2020-09-11 10:22:00 Friday ET

AYA fintech network platform provides proprietary alpha stock signals and personal finance tools. In recent times, we have completed our fresh website up
2023-11-30 08:29:00 Thursday ET

In addition to the OECD bank-credit-card model and Chinese online payment platforms, the open-payments gateways of UPI in India and Pix in Brazil have adapt